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Bitcoin Pulled Back Toward $81,000 as ETF Outflows and Short Selling Counter Fresh Capital Inflows

MixedMedium impact
BTCUSD$82,986.75 −0.84%BTCUSD$82,998.32 −0.81%

Bitcoin (CRYPTO:BTCUSD) experienced market weakness following a rise to $87,000, briefly falling under $81,000 before a weekend rebound helped recover part of the loss. Momentum slowed significantly, with the 14-day relative strength index falling from 57.80 to 44.92. Bitcoin currently trades around $82,690, down 1.20% on the day.

The pullback was driven by heavy selling in both derivative and institutional spot markets. Spot ETFs recorded $701.57 million in weekly outflows, marking a major reversal from $117.95 million in weekly inflows as institutional investors secured profits and reduced risk. Simultaneously, perpetual futures traders actively opened short positions. In the options market, open interest expanded 3.3% to $37.38 billion, while the 25-delta skew more than doubled to 4.46%, signaling increased hedging against downside price movements.

Despite the price drop, underlying capital continues to enter the cryptocurrency ecosystem. Monthly realized-capital growth rose from 1.14% to 1.23%, hot capital share expanded to 20.26%, and short-term holder supply reached 14.52%. Investors will watch whether these ongoing inflows from new and short-term buyers can offset institutional profit-taking and technical derivative pressure in the sessions ahead.

Key points

  • Bitcoin (CRYPTO:BTCUSD) briefly fell below $81,000 after reaching $87,000, while its 14-day RSI declined from 57.80 to 44.92.
  • Spot ETF flows swung from $117.95 million in weekly inflows to $701.57 million in outflows as institutional investors took profits.
  • Perpetual futures traders opened fresh short positions, while options open interest grew 3.3% to $37.38 billion with hedging demand doubling.
  • Capital inflows persisted as monthly realized-cap growth increased from 1.14% to 1.23% and hot capital share rose to 20.26%.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did Bitcoin drop after reaching $87,000?

Bitcoin pulled back due to heavy spot ETF outflows totaling $701.57 million and an increase in short positions opened by perpetual futures traders taking profits and reducing exposure.

Are investors still putting capital into Bitcoin?

Yes, capital continues to enter the market. Realized-cap growth rose to 1.23%, hot capital share increased to 20.26%, and the short-term holder supply ratio reached 14.52%.

What do Bitcoin options signals indicate?

Options open interest rose 3.3% to $37.38 billion while the 25-delta skew more than doubled to 4.46%, showing that traders are buying more protection against potential downside risk.